Zoomable Visualization of Market and Sector ETF Performance and Correlation (11/5/10)

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 |  Includes: XLB, XLE, XLF, XLV
by: Michael Bommarito

Last week, I posted a zoomable visualization of the weekly market and sector performance and correlation. People seem to find this image both useful and “cool,” so here is this week’s edition and takeaways below:

  • Green, green, green (on the diagonal). Other than healthcare (NYSEARCA:XLV), every sector was up at least 1%, and most were up well over 3%.
  • More green (off the diagonal). Most sectors were strongly correlated with one another, with the exception of financials (NYSEARCA:XLF) and healthcare (XLV). Healthcare, as noted above, underperformed the market significantly by 2.5%. The story with financials is the opposite – financials were up a whopping 6.8% this week, putting them over 3% ahead of the market.
  • Correlation was strongest between energy (NYSEARCA:XLE) and materials (NYSEARCA:XLB) at 99.5% and weakest between financials (XLF) and healthcare (XLV) at -21.8%.


By the way, this figure is produced with

Python

and

cairo

. The code is fairly ugly and long, so I probably won’t release it unless there’s some demand.